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‘Dismantling Dodd-Frank’ a Top Priority for Administration, Congress

bank-of-america_theridgewoodblog

 

January 27,2017
the staff of the Ridgewood blog

Ridgewood NJ,  After President Trump today said Congress should make financial regulatory reform a priority to “help striving Americans get the credit they need to realize their dreams” and Vice President Pence said “dismantling Dodd-Frank” is a top legislative priority for the Trump Administration, House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement:

“No bureaucrat in Washington should be able to tell hardworking Americans what kind of credit card, bank account, mortgage or retirement advice they can have, but that’s exactly what Dodd-Frank does.  As the President and Vice President have said, Dodd-Frank makes it harder for people to get loans to buy a home or start a small business.  Consumers are paying more in fees and are losing benefits and access to services they want and need.  Instead of ending ‘too big to fail,’ Dodd-Frank institutionalizes bailouts for big banks. Dodd-Frank’s regulations give Wall Street a competitive advantage over community banks and credit unions. In fact, since Dodd-Frank became law the big banks have gotten bigger and the small banks are fewer.

“Fulfilling the Trump Administration’s pledge to dismantle Dodd-Frank this year is essential to leveling the playing field, building a healthy economy and offering every American greater opportunities to achieve financial independence.

“Republicans on the Financial Services Committee are eager to work with the President and his administration to unclog the arteries of our financial system so the lifeblood of capital can flow more freely and create jobs.  The Financial CHOICE Act, our bold and forward looking plan, replaces Dodd-Frank with new policies to protect consumers by holding Wall Street and Washington accountable, end bailouts and unleash America’s economic potential.

“Replacing the Dodd-Frank mistake is necessary if we ever hope to enjoy a healthy economy and make America great again.”

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Did The Market Just Flash A Hindenburg Omen Warning?

hindenburg

by Tyler Durden
Dec 3, 2016 8:30 PM

Amid the slings and arrows of outrageous fortune in the stock, bond, and commodity markets this week, a few ‘rotten’ things began to emerge. With major indices diverging notably, new highs and new lows soaring, and breadth deteriorating, analysts noted the re-awakening of The Hindenburg Omen signal…

As John Hussman previously wrote, when we think of market “internals,” the number of new highs and new lows can contribute useful information. To expand on the vocabulary we use to talk about internals, “leadership” typically refers to the number of stocks achieving new highs and new lows; “breadth” typically refers to the number of stocks advancing versus declining in a given day or week; and “participation” typically refers to the percentage of stocks that are advancing or declining in tandem with the major indices.

The original basis for the Hindenburg signal traces back to the “high-low logic index” that Norm Fosback created in the 1970’s. Jim Miekka introduced the Hindenburg as a daily rather than weekly measure, Kennedy Gammage gave it the ominous name, and Peter Eliades later added several criteria to reduce the noise of one-off signals, requiring additional confirmation that amounts to a requirement that more than one signal must emerge in the context of an advancing market with weakening breadth.

And this week saw renowned technician Tom McClellan declare a Hindenburg Omen had struck…

https://www.zerohedge.com/news/2016-12-03/did-market-just-flash-hindenburg-omen-warning

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Election impact on the Stock Market

Clinton vs Trump 2016

November 8,2016
the staff of the Ridgewood blog

Ridgewood NJ, With the presidential election dominating the news cycles, many investors may be keeping an eye on the stock market as well as the voting booth as they wonder what impact the election of Hillary Clinton or Donald Trump could have on their portfolios.

“Presidential elections are almost always a big part of the greater theme of markets, but in this case even more so,” says Benjamin Lupu, a Certified Financial Planner and founder of Kensington AMI (www.KensingtonAMI.com), an asset-management firm.

Lupu says it’s important to understand that how voters weigh their Election Day choices and how the market views the candidates aren’t necessarily the same thing.

As hard as it might be, he says, investors should lay aside any personal political leanings as they assess what factors might keep the market humming and what factors might upset the market – and affect their investments in the process.

“From an investment standpoint, this isn’t about being for one candidate or the other,” Lupu says. “It’s a matter of trying to gauge what the markets might do depending on different scenarios, and trying to plan and respond accordingly.”

He says factors to consider include:

• The Clinton impact. What ever opinion people may have of Clinton, she represents status quo, continuity and predictability, which markets prefer, Lupu says. Markets in general have been buoyant in recent months as a decisive win for Clinton had been the consensus expectation and has been priced into the markets. Those expectations could change quickly, though, and investors would need to consider adjustments if they do. “Harsh reality may have something to say about this before the process is over, and any reversal in the polls can greatly upset markets,” he says.
• The Trump impact. Trump is extremely popular with his populist base in the U.S., and some people would consider a Trump victory good for business. The wild card, though, is that he’s immensely unpopular in much of the rest of the world, Lupu says. If the race is seen as close, or if Trump is considered to have a strong chance of winning, global markets could react negatively, at least initially. If the odds of a Trump win appear to be improving, it might be a good idea for investors to reduce exposure, stay partially in cash and see what transpires, Lupu says.
• A general approach. Financial security in the U.S. has traditionally come from three things: sound, long-term process; clear, unemotional thinking; and American optimism, Lupu says. “I like to say keep it clean, be disciplined and have faith in the future,” he says.  In this case, that means be aware of market expectations, follow what happens, but stay focused and make prudent decisions based on facts and not emotions – or personal political preferences.

In any other presidential election year, Lupu says, he wouldn’t advocate keeping such a close watch on who’s ahead in the polls and the implications behind the poll numbers. But Clinton vs. Trump is far from the typical race.

“I admit this is not the usual playbook for election years,” Lupu says. “But then, this election is not the usual affair.”

About Benjamin Lupu

Benjamin Lupu, a Certified Financial Planner, is founder of Kensington AMI (www.KensingtonAMI.com), an asset-management firm in California. He has 36 years experience as an investment advisor, and his primary expertise is dividend and income investment and total return methodology.